Strong support is seen near Rs 280-285 zones where 61.8 percent Fibonacci retracement is located of the same upward swing, says Shabbir Kayyumi of Narnolia Financial Advisors.
In ITC, selling seems to be absorbed by buyers after giving 50 percent correction from the peak of Rs 323. The stock is bottomed out near 50 percent Fibonacci retracement of the entire upward swing from Rs 259 to Rs 323 levels which is supportive for the Bulls.
Emergences of morning star near the same suggest reversal in the coming sessions. Currently, it is retesting its previous neckline of cup and handle pattern on weekly chart which is around 288 levels.
Strong support is seen near Rs 280-285 zones where 61.8 percent Fibonacci retracement is located of the same upward swing. Buy around Rs 290 with stop loss Rs 267 for the target of Rs 335.Disclaimer: The author is Head - Technical & Derivative Research, Narnolia Financial Advisors. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.